Mercedes-Benz India Expands Footprint as Private Consumption Grows in Smaller Cities

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New Delhi— With private consumption on the rise in India’s Tier 2 and Tier 3 cities, Mercedes-Benz India on Thursday announced an expansion of its footprint into key high-potential markets, reflecting growing demand amid a resilient economy.

The luxury carmaker achieved a record-breaking performance in 2024, selling 19,565 new cars—its best-ever sales year in its three-decade history in the country. This marks a significant jump from the 17,408 units sold in 2023.

Continuing its growth trajectory, Mercedes-Benz India inaugurated state-of-the-art luxury facilities in Faridabad and Agra, further strengthening its presence in northern India.

In a statement, the company also announced plans to expand into other strategic markets, including Kanpur and Varanasi, underscoring Uttar Pradesh’s rising significance as a region with strong growth potential.

“Agra is an important market for Mercedes-Benz, with an affluent customer base and rising demand for our vehicles. We’re seeing a rapid evolution in customer aspirations here, particularly for our ultra-luxury portfolio,” said Santosh Iyer, Managing Director and CEO, Mercedes-Benz India.

Mercedes-Benz already operates a luxury facility in Lucknow, and with the new additions, the company is strengthening its reach in the state.

The German automaker currently boasts the largest luxury network in India, with over 100 touchpoints across more than 50 cities.

Last month, Mercedes-Benz India signed a Memorandum of Understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT) to enhance India’s manufacturing capabilities, road safety, and environmental sustainability.

The partnership aims to support Indian startups by offering infrastructure, mentorship, funding access, and market linkages. It also envisions fostering international collaborations and promoting knowledge exchange for long-term impact.

Looking ahead, Mercedes-Benz India plans to launch at least eight new models in 2025, according to Iyer. “We will continue focusing on strengthening our product portfolio and expanding our luxury touchpoints across India,” he added.

The company has announced plans to invest ₹450 crore in India over the next three years and aims to roll out 20 new touchpoints by the end of 2025. Among its highly anticipated upcoming releases is the ‘AMG GLE 53 Coupe’, expected to launch in Q2 this year. (Source: IANS)